START-UP NY tax elimination credit

Who is eligible? 

You are entitled to this refundable credit if you or your business:

• is approved by Empire State Development (ESD) to participate in the START-UP NY program and received a Form DTF-74, Certificate of Eligibility, from your campus sponsor;
• operates in a tax-free New York area;
• creates and maintains net new jobs; and
• meets the annual employment test.

How much is the credit?

The credit is equal to the product of:

• the tax-free NY area allocation factor and
• the tax factor.

The tax-free NY area allocation factor is the percentage of the business’s economic presence in the tax-free NY area where the business was approved to locate by ESD. The tax factor is computed based on your tax after other allowable credits. See the credit form instructions for additional information on how to calculate your credit.

Eligible taxpayers may claim the credit for ten consecutive tax years beginning with the tax year during which the business locates in a tax-free NY area.

Additional information

• Form CT-638, START-UP NY Tax Elimination Credit, and its instructions (for corporations); or
• Form IT-638, START-UP NY Tax Elimination Credit, and its instructions (for all others).

To learn about other New York State tax credits available to businesses, see Business incentives.